The following is a presentation of the major real estate transactions reported in 2010 by Nikkei Real Estate Market Report. The top twenty transactions have been listed in order of total transaction value. In first place are the transactions between Mori Trust Holdings Inc. and its group REIT which involved replacement of assets between the two parties. In second place is Seven & i Holdings Co., Ltd., which bought back the Seibu Department Ikebukuro Main Store, using the opportunity presented by the redemption of CMBS. This year the prominent transactions were bulk sales related to reorganization of REITs and the replacement of assets.
Mori Trust Sogo REIT acquiring 50% of Tokyo Shiodome for Y110bn
Mori Trust Sogo REIT will acquire 50% joint ownership in the Tokyo Shiodome Building in Higashi-Shinbashi, Minato-ku, Tokyo for 110 billion yen [$1.1 billion] in April 2010. The seller is the REIT’s sponsor, Mori Trust. The REIT will sell the Akasaka-Mitsuke MT Building in Moto-Akasaka to Mori Trust for 26.9 billion yen [$280 million] in exchange.
Buy back of Seibu Ikebukuro Main Store completed at Y123bn
On September 24, Seven & i Holdings completed the buy back of the building that its subsidiary Seibu Department Store occupies. The price was 123 billion yen [$1.4 billion]. Capital of 110 billion yen [$1.3 billion] raised in June through the issuance of straight bonds by Seven & i was allotted for the property acquisition.
Nippon Oil to swap interests in Resona Maruha, Gran Tokyo South with Mitsubishi Group
Nippon Oil decided to acquire 27% of the ownership in the Resona Maruha Building in Otemachi, Chiyoda-ku, Tokyo. The seller is a special purpose company financed by Mitsubishi Estate, etc. and the price is 42 billion yen [$460 million]. At the same time, Nippon Oil will sell 11.64% of the ownership in Gran Tokyo South Tower to an SPC for 40 billion yen [$440 million].
Mitsubishi Estate transfers Aoyama Building to its fund for Y45bn
Mitsubishi Estate decided to transfer its 95% ownership in the Aoyama Building in Kita-Aoyama, Minato-ku, Tokyo. The new owner is a private fund of Mitsubishi Jisho Investment Advisors, which is part of the Mitsubishi Estate Group and the price is 45 billion yen [$490 million]. The handover of the ownership took place on March 30.
Mori Hills REIT reshuffles Y20bn in assets
Mori Hills REIT (MHR) disposed of the Toranomon 35 Mori Building and 42 spaces in Moto-Azabu Hills in Minato-ku, Tokyo. The total sale price was 21.79 billion yen [$250 million]. The buyer was its sponsor, Mori Building. At the same time, MHR acquired the 2,565 m2 of leased land of Laforet Harajuku, a commercial facility in Jingumae, Shibuya-ku, from Mori Building.
Sumitomo acquiring Y41.6bn Tokyo Bay land
The Tokyo Metropolitan Government and the Urban Renaissance Agency decided to sell 110,000 m2 of land to Sumitomo Realty & Development for 41.6 billion yen [480 million]. The total project cost including the land acquisition cost is approximately 102.8 billion yen [$1.2 billion]. Some of the buildings are scheduled to be completed in January 2015.
Daibiru acquires Aoyama Rise Square for Y38bn
Osaka-based real estate company Daibiru decided to acquire more than 80% ownership in Aoyama Rise Square in Minami-Aoyama, Minato-ku, Tokyo. The price is 37.9 billion yen [$390 million] and the seller is FF Invests, which is believed to be a special purpose company of AIG. The handover of the ownership is scheduled for late April.
Subaru selling Shinjuku HQ, moving to Ebisu
Fuji Heavy Industries (FHI), the manufacturer of "Subaru" brand vehicles, decided to sell the Shinjuku Subaru Building, where its head office is located. The price is 34 billion yen [$390 million] and the buyer is Odakyu Electric Railway. The ownership to the property will be transferred in April 2011.
Elliott, Kenedix to obtain Y33bn REIT portfolio
Japan Retail Fund, a REIT sponsored by Mitsubishi Corporation and UBS A.G., announced that it will sell all 18 properties excluding commercial facilities assumed as a result of its merger with REIT LaSalle Japan. The total sale price is 33.2 billion yen [$370 million]. The purchaser is TMK Sonic Investments 7, an investment vehicle for which Kenedix handles asset management.
Ralph Lauren Omotesando acquired by Orix, Secured and Trinity
Three companies obtained the equity of a special purpose company owning retail building Espoir Omotesando. The three companies are Orix Real Estate, Secured Capital Japan and Trinity Investment of the U.S. and their respective investment ratios are unknown. The building is occupied by the Omotesando store of apparel brand Ralph Lauren.
Orix JREIT selling Shinjuku building, acquiring Y20bn assets
Orix JREIT sold the Orix Shinjuku Building in Shinjuku-ku, Tokyo, for 9 billion yen [$98 million] to Tokyu REIT in March 2010. Meanwhile, Orix JREIT will purchase three properties including the OX Tamachi Building for a total of about 20.7 billion yen [$230 million]. The REIT implemented a drastic asset reshuffling in March, selling two properties and acquiring six, including the buildings mentioned above.
Frontier REIT acquires Ginza retail building for Y13.6bn
Frontier REIT of the Mitsui Fudosan Group decided to acquire Ginza Glasse in Ginza, Chuo-ku, Tokyo and Mitsui Shopping Park LaLaport Iwata in Iwata City, Shizuoka Prefecture. Ginza Glasse was sold by a special purpose company G3 Development YK, which was financed by Mitsui Fudosan. It is a retail building that was constructed on the former site of the MassMutual Seimei Ginza Building.
JRF selling commercial facility in Saitama to Parco for Y26bn
In March 2010, Japan Retail Fund (JRF), a REIT sponsored by Mitsubishi Corporation and UBS, decided to sell Urawa Parco (the 8953 Saitama Urawa Building), a commercial facility in Saitama City. The buyer is fashion building operator Parco, which currently occupies the building. The ownership will be handed over on March 17 and the price is 26.1 billion yen [$280 million].
Retail Fund acquires Y24bn properties, including ZARA Shinjuku
Japan Retail Fund (JRF), a REIT sponsored by Mitsubishi Corporation and UBS, is acquiring seven properties consisting of commercial facilities and plots of leased land in Tokyo and Osaka from March to April 2010. The acquisition prices will total 24.38 billion yen [$270 million].
JRE acquiring additional Tokyo Opera City ownership for Y22bn
Japan Real Estate (JRE) decided to acquire approximately 23% of the ownership in the Tokyo Opera City Building in Shinjuku-ku for around 22.43 billion yen [$240 million]. JRE is a REIT sponsored by Mitsubishi Estate and the seller is Odakyu Electric Railway. Following this acquisition, JRE will own approximately 31% of the entire building
UR acquires 6 sites as measures against economic crisis
Based on measures against the economic crisis passed by the Japanese government in 2009, the Urban Renaissance Agency acquired six different sites in the capital area. The total acquisition cost was approximately 22.3 billion yen [$240 million]. About 11.1 billion yen [$120 million], or 50% of which was provided from the national budget based on the act.
Credit Agricole purchases Y20bn Retec condo portfolio
A special purpose company of CLSA Capital Partners - part of the Credit Agricole Group - acquired 11 rental real estate properties in Tokyo and Yokohama. The properties are part of the portfolio of Duplex Selection Investment Corporation, which is managed by a subsidiary of real estate company Retec Consultants. The price is believed to be more than 20 billion yen [$230 million].
RREEF purchases Uniqlo Osaka flagship from AIG
RREEF, the real estate management arm of the Deutsche Bank Group, obtained the building that houses the Uniqlo Shinsaibashi store in Osaka City. The price for the store, which opened on October 1, was 19.5 billion yen [$230 million]. The seller was a special purpose company of AIG.
Kajima sells 20% equity interest in owner of Akihabara UDX for Y19bn
Kajima will transfer 56,400 preferred shares in the special purpose company that owns Akihabara UDX on March 16. This is equivalent to 20% of all the equity interest with an acquisition price of about 19.4 billion yen [$210 million]. The equity interest is being acquired by the trust account of a domestic trust bank.
Y19bn Osaka land traded for university campus
Educational corporation Ritsumeikan acquired the former site of Sapporo Breweries’ Osaka factory in Ibaraki City, Osaka Prefecture for 19 billion yen [$230 million]. Ritsumeikan University will open a new campus on the approximately 120,000 m2 site in April 2015.
